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UASC and CSCL most likely partners for CMA CGM: Alphaliner

UASC and CSCL most likely partners for CMA CGM: Alphaliner
Having been left out in the cold by Maersk Line and Mediterranean Shipping Co (MSC) the best option for CMA CGM could be an alliance with United Arab Shipping Co (UASC) and China Shipping Container Lines (CSCL), believes analyst Alphaliner.

In its weekly newsletter Alphaliner noted that as Maersk and MSC form 2M the termination of cooperative agreements CMA CGM has with Maersk on the Far East – Mediterranean trade, with MSC on Asia – North Europe, and both lines on the transpacific, would leave it with “significant service gaps which it can only fill through new slot arrangements with other carriers”.

Although Alphaliner saw CMA CGM’s options as limited with it either chosing to go it alone along with individual slot share arrangements or join another alliance. “However, it seems more likely for the French Line to seek a new alliance arrangement. In this respect, CSCL and UASC appear to be the most likely partners for CMA CGM, as other carriers are either already members of existing alliances or simply too small.”

The report even went as far as to give the potential new alliance a name dubbing it 2CU. Such an alliance would essentially split the Asia – Europe market four ways between it 2M, CKYHE and G6. It would have the smallest share on Asia – North Europe with a 19% share of the market, while the potential alliance would have the second largest market share on Asia – Mediterranean with 21.6% share.

The possibility of an alliance between CMA CGM and UASC and CSCL was also flagged-up last week to Seatrade Global by Braemar Seascope.